Islamabad: Federal Finance Minister Senator Muhammad Aurangzeb on Tuesday reiterated the government’s commitment to reduce expenditure and increase revenue.
In a press conference in his home town of Kamalia, the minister said that the federal government would close ministries or provincial departments.
The move is expected to significantly reduce costs and improve efficiency, and the prime minister announced the closure of Pakistan’s Public Works Department, a move that will help reduce the government’s financial burden.
Second, the government will privatize State-Owned Enterprises (BUMN) which are a significant drain on the state’s treasury. The minister cited the example of Pakistan International Airlines (PIA), which has a liability of Rs 622 billion handed over to the government. Privatization of state-owned enterprises will help the government reduce its financial burden and improve efficiency.
The minister also said that the outsourcing of the airport will be completed, the Karawang airport will be handed over to the private sector by July or August this year, and then L | announced that the airport will be given away.
The government aims to reduce losses and burdens on the federal government, and this measure is part of a larger effort to achieve this goal. The Minister said that the Prime Minister himself is on the way to reduce costs and improve efficiency.
On the revenue side, the minister stated the need to increase the tax-to-GDP ratio from 9.5% to 13% in the next three years, adding that taxes are important to run the country.
To achieve this goal, the government has announced revenue measures, including bringing the tax-free sector to the tax base, phasing out the $3.9 trillion tax break, and changing policies in areas such as health and agriculture.
The minister announced that 32,000 retailers have been registered and will be subject to the tax from July 2024, confirming the government’s commitment to bring other sectors into the tax net.
The government is also focusing on implementing the de-lease system and its eventual digitization to reduce human intervention, increase transparency and eliminate corruption. Automating sales tax is a top priority, he said.
He reiterated the government’s commitment to agricultural development and said that the federal Public Sector Development Program (PSDP) has spent $41 billion to develop the sector, adding that the government intends to modernize tube wells, provide credit to small farmers and develop warehouses. facilitate small farmers. Fertilizer, seed and agricultural subsidies will continue, he said. He said banks, including sharia banks, are being pursued to facilitate loans to farmers to help develop the sector.
In the IT sector, the government aims to support freelancers and increase exports from $3.5 billion to $7 billion. He said that a significant amount of money has been spent in the budget to facilitate the IT sector.
The Minister said that the Prime Minister’s visit to China now focuses on technology transfer, industrial development and export promotion rather than seeking assistance.
Overall, the government’s plan aims to strengthen our country’s economy, reduce aid dependency and promote sustainable growth through tax, compliance and development in key sectors such as agriculture and IT.
